Uncovering hidden assets in your divorce

Introduction to divorce proceedings

Divorce can be an overwhelming experience – especially when there are concerns that your partner may be hiding assets. These suspicions can add further stress at an already difficult time and raise serious questions about fairness and your financial security.

In the UK, both parties are under a strict legal duty to provide full and frank disclosure of all their assets, including bank accounts, property, investments, and any other financial interests. This requirement is fundamental to ensuring a fair financial settlement and upholding the integrity of the divorce process.

If one party suspects the other of hiding assets, it is crucial to address these concerns early, as failing to disclose assets can lead to serious consequences, such as fines, payment of the other party’s legal costs, or even imprisonment. Family law is designed to protect both parties and ensure that all assets are accounted for, so that a fair outcome can be achieved.

The importance of financial disclosure

Financial disclosure is at the heart of any divorce proceedings, as it allows both parties to fully understand each other’s financial situation and work towards a fair settlement. Full and frank disclosure means providing comprehensive details about all assets, income, and liabilities, supported by documents such as bank statements and tax returns.

Failing to disclose financial information not only undermines the process, it can also lead to delays, higher legal costs, and an outcome that feels deeply unfair. The court relies on accurate and honest disclosure to make decisions that are just for both parties. Seeking legal advice early on can help ensure that all assets are properly disclosed and that the financial settlement reached is both fair and reasonable, reducing the risk of future disputes.

Hiding assets during a divorce

As part of your divorce, you and your ex will have to agree on dividing any money, property, investments, pensions and inherited assets. Examples of assets that can be hidden include gold, digital assets, savings accounts, joint accounts, and other property. Most couples are able to reach an agreement without going to court by sitting down together and working things out. This process works well when both parties are open and honest when disclosing all of their assets during divorce.

Sometimes, however, one party may try to hide assets from their ex so they are not split in the divorce. An ex-partner may use tactics such as fake invoices, transferring money, undervaluing assets, or improper transactions to avoid disclosing their true financial position. Senior divorce solicitor in London, Diana Bastow, discusses what you should do if you believe your spouse to be hiding assets in your divorce including:

• hiding pensions
• hiding inheritance money
• hidden bank accounts

This is more common than you might think. Unsurprisingly, the courts take a really dim view of such deception since it prevents a fair settlement from being reached.

But how can you tell if your ex is hiding assets – and what can you do if they are? Our specialist divorce solicitors are experienced in uncovering hidden assets and can help ensure a fair financial settlement.

How can I tell if my spouse is hiding money before or during divorce?

Signs include unusual bank activity, cash withdrawals, unexplained transfers, or reluctance to provide financial documents. The first step is to look at the financial disclosure ‘Form E.’ This is a document both you and your ex will be asked to fill out, giving as much information as possible regarding bank accounts, savings, investments, pensions, mortgages, wages, and so on. At 28 pages long, this document can be daunting to fill out. Full financial disclosure is essential, including all income sources, property ownership, and disclosing assets such as second homes and any other property. Our solicitors may use land registry searches and apply for a court order to uncover undisclosed accounts, bank accounts, and concealed assets if there are suspicions of hidden or missing information. At the same time, an experienced solicitor will know how to read between the lines of the financial disclosures and can alert you if something doesn’t add up. 

Other red flags to watch out for include:

• Your ex stops receiving mail, which could indicate that important documents are being sent to a different address 
• Passwords to accounts or investments are suddenly changed
• You’re locked out from running a jointly owned or managed business
• Property is transferred into the names of family members
• Your ex is suddenly investing in cryptocurrencies such as Bitcoin, which can be very hard to trace
• Your ex suddenly changes their mind about the divorce and wants to ‘try again’ until their financial affairs are in order

Understanding your family circumstances and the nature of your financial proceedings can help in finding hidden assets and achieving a fair divorce settlement.

What should I do if I think my ex is hiding assets before our divorce?

If you suspect that your spouse is hiding assets, you should tell your solicitor straight away. It’s important that you don’t try to investigate the situation yourself, for example, by opening your ex’s mail or hacking into their computer. These actions are against the law and you could end up with a criminal record. 

Once your solicitor is aware of the situation, there are various things they can do to find the hidden assets. They may be able to apply for a third-party disclosure order, for instance, which enables your solicitor to obtain documents from organisations like banks and HMRC. Or they may hire a forensic accountant to analyse your ex’s financial statements and raise questions about any inconsistencies. For example, someone who claims to be earning £40,000 will not be able to justify an expenditure over £100,000, unless they have taken out a huge debt or there is another source of income that has not been disclosed. 

Another option is to apply for a freezing order. This will stop your spouse from dealing with assets to protect them in the divorce. 

In respect of property, your solicitor will be able to make an application for a Homes Rights Notice to be placed on the former matrimonial home if the property is held in their sole name and apply for a Unilateral Notice or Restriction to be placed on any other properties held in your ex’s sole name.  

Can a forensic accountant find hidden bank accounts during divorce?

Yes, forensic accountants are trained to trace hidden assets, including offshore accounts, undeclared income, and disguised transfers. They can uncover suspicious activity by analysing bank statements, business records, and financial transactions. Their evidence can be used in court to support a fair financial settlement.

What is the penalty for hiding assets in a divorce?

A few things could happen if your ex fails to disclose financial information in a divorce. If the divorce is ongoing, the court will order your ex to disclose their finances and assets fully, and if they are found to be hiding money, the court may order that your ex pays your legal costs. Or they may make a financial order on the basis that a certain amount of money is available, despite what your ex has chosen to reveal.

If the case is already closed, the court has the power to reopen it, set aside the existing financial settlement, and have you renegotiate everything from scratch, either privately or through the courts. 

Ultimately, hiding assets in a divorce to deprive a spouse of their fair share is a criminal offence punishable by imprisonment. If you are in any doubt about your ex’s disclosures, speak to your solicitor straight away. 

Get expert legal advice tailored to your situation

Osbornes Law has a team of expert divorce lawyers in London who can discuss your particular circumstances and complete Form E on your behalf to ensure your case is best represented to the court. We can help with tracing assets including hidden pensions, inherited money and bank accounts.

We deal with both UK and international clients. If you are overseas or outside London, we have secure high-speed video conferencing facilities and a full online service to ensure you are kept up-to-date and fully appraised of your case and legal options.

Diana Bastow is a senior divorce lawyer at Osbornes. She has over twelve years of experience in advising clients in relation to divorce and financial disputes with an international element. Diana also acts for HNW individuals which have included offshore property, businesses and trusts. Diana is listed as a ‘rising star’ in the Legal 500 directory.

To speak with Diana call us or e-mail us using the form below and we will contact you back.